A more technical look at the markets from InterTrader
In a surprising move, the EUR/USD kick started the week on a strong positive footing despite Moody’s having downgraded the ESM bailout program on Friday.
In a flurry of buying, the bulls pushed the market above $1.30 where it is currently hovering. The risk appetite that seems to have built up in the past 24 hours is likely to continue today.
With the EUR/USD trading in a bullish channel since last Wednesday, the technical set up favours further bullishness (see below).
EUR/USD Technical Trading Chart
With the FX spread betting market hovering below October’s highs, an upside penetration of $1.311 would open the door for $1.3135, which will be a critical resistance level for the bulls to watch.
As long as the support level at $1.3015 remains intact, the market is likely to be well supported. Should the bears break below $1.3015, we could see the market re-testing $1.298.
On the economic data front, we have the EU Producer Price Index during European hours and US Redbook later in the evening.
Good luck
Dafni Sedari
(Original article written 4 December 2012).
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